What changed in this filing

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Item 1. Financial Statements

2025-10-29 compared with 2025-07-30 · 113 added, 102 removed, 369 unchanged (37% of the section changed)

4 unchanged sentences

(amounts in thousands)

September 30,

Current Assets:

21 unchanged sentences

Retained earnings

Accumulated other comprehensive (loss) income

Accumulated other comprehensive income

Treasury stock, at cost

7 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Cost of sales

13 unchanged sentences

Three Months Ended

Six Months Ended

Other comprehensive loss:

Unrealized losses on available-for-sale investments, net of tax of $ 30 and $ 60 for the three and six months ended June 30, 2025, respectively, and net of tax of $ 11 and $ 49 for the three and six months ended June 30, 2024, respectively

Nine Months Ended

September 30,

Other comprehensive income (loss):

Unrealized gains (losses) on available-for-sale investments, net of tax of $( 36 ) and $ 24 for the three and nine months ended September 30, 2025, respectively, and net of tax of $( 154 ) and $( 105 ) for the three and nine months ended September 30, 2024, respectively

Comprehensive income

4 unchanged sentences

(amounts in thousands)

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Accumulated Other

1 unchanged sentence

Paid-In Capital

Comprehensive (Loss) Income

Balance - March 31, 2025

Comprehensive Income (Loss)

Balance - June 30, 2025

Stock-based compensation expense

2 unchanged sentences

Repurchase of common stock for treasury

Issuance of common stock under Employee Stock Purchase Plan

Dividend declaration ($ 0.15 per share)

Other comprehensive loss, net of tax

Balance - June 30, 2025

Three Months Ended June 30, 2024

Other comprehensive income, net of tax

Balance - September 30, 2025

Three Months Ended September 30, 2024

Accumulated Other

1 unchanged sentence

Paid-In Capital

Comprehensive (Loss) Income

Balance - March 31, 2024

Comprehensive Income (Loss)

Balance - June 30, 2024

Stock-based compensation expense

2 unchanged sentences

Repurchase of common stock for treasury

Issuance of common stock under Employee Stock Purchase Plan

Dividend declaration ($ 0.10 per share)

Other comprehensive loss, net of tax

Balance - June 30, 2024

Other comprehensive income, net of tax

Balance - September 30, 2024

See notes to unaudited condensed consolidated financial statements.

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Accumulated Other

1 unchanged sentence

Paid-In Capital

Comprehensive (Loss) Income

Comprehensive Income (Loss)

Balance - December 31, 2024

6 unchanged sentences

Other comprehensive loss, net of tax

Balance - June 30, 2025

Six Months Ended June 30, 2024

Balance - September 30, 2025

Nine Months Ended September 30, 2024

Accumulated Other

1 unchanged sentence

Paid-In Capital

Comprehensive (Loss) Income

Comprehensive Income (Loss)

Balance - December 31, 2023

5 unchanged sentences

Dividend declaration ($ 0.10 per share)

Other comprehensive loss, net of tax

Balance - June 30, 2024

Other comprehensive income, net of tax

Balance - September 30, 2024

See notes to unaudited condensed consolidated financial statements.

3 unchanged sentences

(amounts in thousands)

Six Months Ended

Cash Flows (used in) provided by Operating Activities:

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Nine Months Ended

September 30,

Cash Flows provided by Operating Activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

11 unchanged sentences

Accrued expenses and other liabilities

Net cash (used in) provided by operating activities

Net cash provided by operating activities

Cash Flows provided by (used in) Investing Activities:

13 unchanged sentences

Net cash used in financing activities

Increase (decrease) in cash and cash equivalents

Increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

20 unchanged sentences

Subsequent events have been evaluated through the date of issuance of these financial statements.

The operating results for the three and six months ended June 30, 2025 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2025.

The operating results for the three and nine months ended September 30, 2025 may not be indicative of the results expected for any succeeding quarter or the entire year ending December 31, 2025.

Certain amounts in the prior period’s condensed consolidated financial statements have been reclassified to conform with the current period presentation.

13 unchanged sentences

The Company classifies investments as short-term when their remaining contractual maturities are one year or less from the balance sheet date, and as long-term when the investment has a remaining contractual maturity of more than one year from the balance sheet date.

The Company records investments at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive (loss) income on the condensed consolidated balance sheets.

Included in interest income, net on the condensed consolidated statements of income is interest income on cash equivalents and short-term investments of $ 3,217 and $ 7,018 for the three and six months ended June 30, 2025, respectively, and $ 4,655 and $ 9,220 for the three and six months ended June 30, 2024, respectively.

The Company records investments at fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income on the condensed consolidated balance sheets.

Included in interest income, net on the condensed consolidated statements of income is interest income on cash equivalents and short-term investments of $ 3,689 and $ 10,706 for the three and nine months ended September 30, 2025, respectively, and $ 4,840 and $ 14,060 for the three and nine months ended September 30, 2024, respectively.

Treasury Stock, at Cost

The total repurchases for the six months ended June 30, 2025 and 2024 were recorded as treasury stock of $ 60,863 and $ 3,788 , respectively.

The total repurchases for the nine months ended September 30, 2025 and 2024 were recorded as treasury stock of $ 66,028 and $ 7,723 , respectively.

Such costs reflect the applicable one percent excise tax imposed by the Inflation Reduction Act of 2022 on the net value of certain stock repurchases made after December 31, 2022.

Severance Expenses

The severance expenses recorded for the six months ended June 30, 2025 and the three and six months ended June 30, 2024 were related to involuntary reductions in the Company’s workforce to lower the Company’s cost structure and included cash severance and other related termination benefits.

The severance expenses recorded for the nine months ended September 30, 2025 and 2024 were related to involuntary reductions in the Company’s workforce to lower the Company’s cost structure and included cash severance and other related termination benefits.

The majority of these costs are expected to be paid within a year of the applicable termination.

Included in accrued expenses and other liabilities on the condensed consolidated balance sheets as of June 30, 2025 was $ 1,394 related to unpaid severance expenses.

Included in accrued expenses and other liabilities on the condensed consolidated balance sheets as of September 30, 2025 was $ 1,001 related to unpaid severance expenses.

Recently Issued Financial Accounting Standards

9 unchanged sentences

The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses for Accounts Receivable and Contract Assets .

This guidance provides a practical expedient related to estimating expected credit losses for accounts receivable and contract assets by assuming that current conditions remain unchanged over the life of the asset.

This ASU is effective for the Company’s annual reporting periods beginning January 1, 2026, and for interim reporting periods beginning January 1, 2027, with early adoption permitted.

The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software .

This guidance was issued to establish new criteria to be considered for capitalization of software costs under Subtopic 350-40, as well as link the disclosure requirements of Subtopic 360-10 to capitalized costs accounted for under Subtopic 350-40.

This ASU is effective for the Company’s annual reporting periods beginning January 1, 2028, and for interim reporting periods beginning January 1, 2029, with early adoption permitted.

The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

Note 2–Revenue

The Company disaggregates revenue from its arrangements with customers by type of products and services, as it believes this method best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended June 30, 2025 and 2024, along with the segment for each category (in thousands).

Three Months Ended June 30, 2025

The following tables represent a disaggregation of revenue from arrangements with customers for the three months ended September 30, 2025 and 2024, along with the segment for each category (in thousands).

Three Months Ended September 30, 2025

Public Sector

5 unchanged sentences

Total Net sales

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Public Sector

5 unchanged sentences

Total Net sales

The following tables represent a disaggregation of revenue from arrangements with customers for the six months ended June 30, 2025 and 2024, along with the segment for each category (in thousands).

Six Months Ended June 30, 2025

The following tables represent a disaggregation of revenue from arrangements with customers for the nine months ended September 30, 2025 and 2024, along with the segment for each category (in thousands).

Nine Months Ended September 30, 2025

Public Sector

5 unchanged sentences

Total Net sales

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Public Sector

6 unchanged sentences

Contract Balances

The following table provides information about contract liabilities from arrangements with customers as of June 30, 2025 and December 31, 2024 (in thousands).

June 30, 2025

The following table provides information about contract liabilities from arrangements with customers as of September 30, 2025 and December 31, 2024 (in thousands).

September 30, 2025

December 31, 2024

Contract liabilities, which are included in accrued expenses and other liabilities

Changes in the contract liability balances during the six months ended June 30, 2025 and 2024 are as follows (in thousands):

Changes in the contract liability balances during the nine months ended September 30, 2025 and 2024 are as follows (in thousands):

Balance at December 31, 2024

1 unchanged sentence

Amounts recognized as revenue as performance obligations satisfied

Balance at June 30, 2025

Balance at September 30, 2025

Balance at December 31, 2023

1 unchanged sentence

Amounts recognized as revenue as performance obligations satisfied

Balance at June 30, 2024

Balance at September 30, 2024

Note 3–Fair Value Measurements

Cash equivalents and short-term investments as of June 30, 2025 and December 31, 2024 consist of the following (in thousands):

June 30, 2025

Cash equivalents and short-term investments as of September 30, 2025 and December 31, 2024 consist of the following (in thousands):

September 30, 2025

Amortized Cost

17 unchanged sentences

All short-term investments had stated maturity dates of less than one year.

The Company has recorded the securities at fair value on its condensed consolidated balance sheets and unrealized gains and losses are reported as a component of accumulated other comprehensive (loss) income.

The amount of realized gains and losses reclassified into earnings and the related adjustments to deferred taxes are based on the specific identification of the securities sold or securities that reached maturity date.

8 unchanged sentences

Unobservable inputs that are supported by little or no market activities and are based on significant assumptions and estimates.

As of June 30, 2025 and December 31, 2024, the fair values of the Company’s investments were all measured using level 1 inputs.

As of September 30, 2025 and December 31, 2024, the fair values of the Company’s investments were all measured using level 1 inputs.

Note 4–Earnings Per Share

1 unchanged sentence

Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributable to non-vested stock units and stock options outstanding, if dilutive.

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2025 and 2024 (in thousands, except per share data):

Three Months Ended June 30,

Six Months Ended June 30,

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2025 and 2024 (in thousands, except per share data):

Three Months Ended September 30,

Nine Months Ended September 30,

Denominator for basic earnings per share

2 unchanged sentences

Earnings per share:

For the three and six months ended June 30, 2025 and 2024, the Company had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

For the three and nine months ended September 30, 2025 and 2024, the Company had no outstanding non-vested stock units that were excluded from the computation of diluted earnings per share because including them would have had an anti-dilutive effect.

Note 5 – Leases

The Company leases certain facilities from a related party, which is a company affiliated with it through common ownership.

As of June 30, 2025, there were no additional significant operating leases that have not yet commenced.

Refer to the following table for quantitative information related to the Company’s leases for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):

Three Months Ended June 30, 2025

Six Months Ended June 30, 2025

The costs for these leases are presented within short-term lease cost in the below table.

As of September 30, 2025, there were no additional significant operating leases that have not yet commenced.

Refer to the following table for quantitative information related to the Company’s leases for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):

Three Months Ended September 30, 2025

Nine Months Ended September 30, 2025

Related Parties

10 unchanged sentences

Capitalized operating leases

Three Months Ended June 30, 2024

Six Months Ended June 30, 2024

Three Months Ended September 30, 2024

Nine Months Ended September 30, 2024

Related Parties

10 unchanged sentences

Capitalized operating leases

As of June 30, 2025, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):

As of September 30, 2025, future lease payments over the remaining term of capitalized operating leases were as follows (in thousands):

For the Years Ended December 31,

2025, excluding the six months ended June 30, 2025

2025, excluding the nine months ended September 30, 2025

Imputed interest

Lease liability balance at June 30, 2025

As of June 30, 2025, the right-of-use, or ROU, asset had a balance of $ 2,219 .

Lease liability balance at September 30, 2025

As of September 30, 2025, the right-of-use, or ROU, asset had a balance of $ 1,781 .

The long-term lease liability was $ 437 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $ 1,624 .

1 unchanged sentence

The long-term lease liability was $ 1,552 and the short-term lease liability, which is included in accrued expenses and other liabilities on the condensed consolidated balance sheets, was $ 1,805 .

Note 6–Accumulated Other Comprehensive (Loss) Income

Accumulated other comprehensive (loss) income, which is included as a component of stockholders’ equity, is comprised of unrealized gains and losses on short-term investments, net of tax.

The changes in accumulated other comprehensive (loss) income were as follows (in thousands):

Six Months Ended

June 30, 2025

Note 6–Accumulated Other Comprehensive Income

Accumulated other comprehensive income, which is included as a component of stockholders’ equity, is comprised of unrealized gains and losses on short-term investments, net of tax.

The changes in accumulated other comprehensive income were as follows (in thousands):

Nine Months Ended

September 30, 2025

Balance - December 31, 2024

Other comprehensive loss before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive (loss) income, net of tax

Other comprehensive income before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive income, net of tax

Net other comprehensive loss

Balance - June 30, 2025

Six Months Ended

June 30, 2024

Balance - September 30, 2025

Nine Months Ended

September 30, 2024

Balance - December 31, 2023

Other comprehensive loss before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive (loss) income, net of tax

Net other comprehensive loss

Balance - June 30, 2024

Included in amounts reclassified from accumulated other comprehensive (loss) income, net of tax for the six months ended June 30, 2025 is $ 76 of realized gain, which is included in “Other income” on the unaudited condensed consolidated statements of income.

Other comprehensive income before reclassifications, net of tax

Less amounts reclassified from accumulated other comprehensive income, net of tax

Net other comprehensive income

Balance - September 30, 2024

Included in amounts reclassified from accumulated other comprehensive income, net of tax for the nine months ended September 30, 2025 is $ 76 of realized gain, which is included in “Other income” on the unaudited condensed consolidated statements of income.

Note 7–Segment Information

11 unchanged sentences

The CODM uses operating income for each segment in the annual budget, periodic forecasting, and quarterly results processes.

Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the three and six months ended June 30, 2025 and 2024 are shown below (in thousands):

Three Months Ended June 30, 2025

Segment information applicable to the Company’s operating segments and the related reconciliations to consolidated amounts for the three and nine months ended September 30, 2025 and 2024 are shown below (in thousands):

Three Months Ended September 30, 2025

Public Sector

8 unchanged sentences

Income before taxes

Six Months Ended June 30, 2025

Three Months Ended September 30, 2024

Public Sector

4 unchanged sentences

Other segment expenses 1

Operating income (loss)

Operating income

Unallocated Headquarters/Other expenses

1 unchanged sentence

Income before taxes

Segment assets

Headquarters/Other assets

Consolidated assets

Three Months Ended June 30, 2024

1) Other segment expenses for each of the reportable segments include service contracts/subscriptions, professional fees, facilities operations, credit card fees, and other miscellaneous expenses.

Nine Months Ended September 30, 2025

Public Sector

4 unchanged sentences

Other segment expenses 1

Operating income

Operating income (loss)

Unallocated Headquarters/Other expenses

1 unchanged sentence

Income before taxes

Six Months Ended June 30, 2024

Segment assets

Headquarters/Other assets

Consolidated assets

Nine Months Ended September 30, 2024

Public Sector

4 unchanged sentences

Other segment expenses 1

Operating income (loss)

Operating income

Unallocated Headquarters/Other expenses

7 unchanged sentences

Assets reported under the Headquarters/Other are managed by corporate headquarters, including cash and cash equivalents, short-term investments, inventories, property and equipment, ROU assets, and intercompany balance, net.

As of June 30, 2025 and 2024, total assets for the Headquarters/Other were presented net of intercompany balance eliminations of $ 46,339 and $59,751 , respectively.

As of September 30, 2025 and 2024, total assets for the Headquarters/Other were presented net of intercompany balance eliminations of $ 51,204 and $64,994 , respectively.

The Company’s capital expenditures consist largely of IT hardware and software purchased to maintain or upgrade its management information systems.

9 unchanged sentences

Cash receipts were automatically applied against any outstanding borrowings.

During the six months ended June 30, 2025 and 2024, the Company borrowed incremental amounts that were each repaid in full.

These borrowings for the six months ended June 30, 2025 and 2024 totaled $ 732 and $ 10,560 , respectively;

During the nine months ended September 30, 2025 and 2024, the Company borrowed incremental amounts that were each repaid in full.

These borrowings for the nine months ended September 30, 2025 and 2024 totaled $ 732 and $ 25,204 , respectively;

however, at no time were the outstanding borrowings greater than the $ 50,000 limit under the credit facility.

The Company had no outstanding borrowings under the credit facility immediately prior to the expiration of the credit facility, or as of June 30, 2024.

The Company had no outstanding borrowings under the credit facility immediately prior to the expiration of the credit facility, or as of September 30, 2024.

Note 10–Supplier Finance Programs

5 unchanged sentences

The agreements with the financial institutions are collateralized by the inventory purchased through the financing agreements.

The Company’s outstanding payment obligations under the supplier finance programs, which are included in accounts payable on the condensed consolidated balance sheets, were $ 62,448 and $ 47,763 at June 30, 2025 and December 31, 2024, respectively.

The rollforward of the Company’s outstanding obligations confirmed as valid under the supplier finance programs for the six months ended June 30, 2025 is as follows (in thousands):

The Company’s outstanding payment obligations under the supplier finance programs, which are included in accounts payable on the condensed consolidated balance sheets, were $ 59,981 and $ 47,763 at September 30, 2025 and December 31, 2024, respectively.

The rollforward of the Company’s outstanding obligations confirmed as valid under the supplier finance programs for the nine months ended September 30, 2025 is as follows (in thousands):

Confirmed obligations outstanding at December 31, 2024

1 unchanged sentence

Confirmed invoices paid

Confirmed obligations outstanding at June 30, 2025

Note 11–Subsequent Events

The One Big Beautiful Bill Act, or OBBBA, was enacted on July 4, 2025.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through future years.

We are currently assessing its impact on our consolidated financial statements.

Confirmed obligations outstanding at September 30, 2025

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements